Contrasting Medalist Diversified REIT (NASDAQ:MDRR) & NETSTREIT (NYSE:NTST)

Medalist Diversified REIT (NASDAQ:MDRR) and NETSTREIT (NYSE:NTST) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Medalist Diversified REIT has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Profitability

This table compares Medalist Diversified REIT and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medalist Diversified REIT	-21.19%	-7.87%	-2.37%
NETSTREIT	0.10%	0.01%	0.01%

Earnings and Valuation

This table compares Medalist Diversified REIT and NETSTREIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medalist Diversified REIT	$9.73 million	1.41	$30,000.00	($1.81)	-6.83
NETSTREIT	$162.78 million	9.54	-$11.94 million	N/A	N/A

Medalist Diversified REIT has higher earnings, but lower revenue than NETSTREIT.

Insider & Institutional Ownership

17.4% of Medalist Diversified REIT shares are owned by institutional investors. 43.8% of Medalist Diversified REIT shares are owned by insiders. Comparatively, 0.6% of NETSTREIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.2%. NETSTREIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.6%. Medalist Diversified REIT pays out -14.9% of its earnings in the form of a dividend. Medalist Diversified REIT has increased its dividend for 2 consecutive years and NETSTREIT has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Medalist Diversified REIT and NETSTREIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medalist Diversified REIT	1	0	0	0	1.00
NETSTREIT	0	2	10	1	2.92

NETSTREIT has a consensus target price of $20.36, suggesting a potential upside of 9.52%. Given NETSTREIT’s stronger consensus rating and higher probable upside, analysts plainly believe NETSTREIT is more favorable than Medalist Diversified REIT.

Summary

NETSTREIT beats Medalist Diversified REIT on 11 of the 17 factors compared between the two stocks.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.